INTERNET: Google Feels China Backlash from Own Employees

Bottom line: An internal petition calling
on Google to be more transparent about its plans to return to China
represents the first major backlash to the move, but is unlikely to
dissuade the company from going ahead.

When the news first broke a
couple of weeks ago that Google (Nasdaq: GOOG) was planning a return to China's
search market, many predicted that western sources would be quick
to criticize the plan, even though few voices have actually spoken
out so far. Fast forward a couple of weeks, when we are hearing the
first sounds of what's likely to become a sea of protests if and
when the company actually makes its China search
homecoming.

Perhaps not too surprisingly, the first salvo in the storm of
protest that could soon emerge is coming from within Google itself,
with word that employees are circulating a petition raising
questions about the reported move. (English
article) This kind of internal debate could be especially
troubling, since the last thing that Google wants is an uprising
within its own ranks at such a delicate time.

What's more, the idealists within the company's midst will have
plenty of ammo for questioning why a country whose policies were
considered too oppressive in the past should suddenly now be
considered acceptable. Of course in my view a big element of this
story is money, which is hardly a sturdy ground to stand on for a
company whose motto is "do no evil".

Before we go any further, let's review what's actually happened
these past few weeks, starting with the big news that got this
whole thing started. Things began about two weeks ago when an
apparently concerned Google employee leaked word that the company
was developing a new China-specific search engine, complete with
software and algorithms that would filter out sensitive topics in
compliance with Beijing's laws. (previous
post)

Google was mum on the topic, but the level of detail in the
report, including the cloak-and-dagger-like project name of
Dragonfly, certainly gave it a fair amount of credibility. Google
abruptly shuttered its China-based search service in 2010,
following a high-profile spat with Beijing over the country's
strict self-policing policies. Since then China's Internet economy
has boomed, and the nation has become the world's biggest
smartphone and mobile Internet market. And as any smartphone user
knows, the big majority of the world's smartphones are powered by
Google's free Android operating system.

More Transparency

All of that brings us to the present, when media are reporting
about this internal petition being circulated by Google employees
urging it to think twice about its decision. The petition isn't
calling for an absolute revocation of the decision, but rather for
more transparency in what's happening, according to one report. The
petition is also calling for Google to set up an ethics commission
to review projects like this one that could raise ethical
questions.

A Reuters report cites three former Google employees saying the
company's thinking is that filtered search services are still a
better alternative than no services at all. I did my own survey on
the topic here in China last week, and found that indeed a sizable
majority of people I surveyed, about two-thirds, said they would
seriously consider making Google their primary search engine if the
company did return to China. (English
article)

In that same piece I wrote on my findings, I also pointed out
that a local commentary in the Communist Party's official People's
Daily newspaper was correct in astutely noting that Google had
become a "politicized brand". Somewhat ironically, or perhaps some
might say aptly, that People's Daily article was later taken
offline, highlighting the fact that China is hardly a society that
welcomes open debate.

All of that brings us back to this latest petition, and what's
likely to happen next, including whether Google will ultimately
return to China. Clearly many Chinese would like to have access to
the world's leading search engine, many believing it would offer
better choices to scandal-tainted local market leader Baidu
(Nasdaq: BIDU).

I still personally believe, perhaps cynically, that Google's
primary motivation in all this is money, and it's willing to take
such a big risk because the profit potential is just too big to
ignore. At the same time, as someone here on the ground I do really
see demand for this product from local Internet users, which could
provide some moral justification for Google's return. At the end of
the day, I have to believe that Google was already prepared for
this kind of backlash, even if this first wave is coming from
within, and will move ahead with the plan barring any extreme
developments.